- If you are nearing 70.5 years old should remember to take Required Minimum Distributions out of your retirement funds. There is a 50 percent tax penalty for distributions not taken. Check with your tax advisor for the amount you are required to take out this year
- Fund a 529 Plan for any child’s college. www.collegeinvest.org, offers an unlimited state income tax deduction.
- Give a charitable donation – it’s a good thing to do and it can help reduce your tax bill.
- Check your Flex Spending Account – you may lose the balance if you don’t spend it before Dec. 31.
- Do you have gains or losses? Consider taking gains if your income was lower this year; or using losses if you’ve made money on some sales and need to offset that gain in hopes of reducing your tax bill.
- Gift a gift or two to a family member. You can gift up to $14,000.00 of cash or assets to any number of people without using up any of your unified estate credit
- If you don’t have an IRA, open one now; you have until April 15th of next year to contribute. Consider rolling a traditional plan to a Roth if you can afford to pay the income tax on the roll
And remember, review your situation with your tax advisor before year’s end, and discuss these actions and your plan for next year.
